Leading the way through philanthropy: Muthoot Finance aligns business growth with social impact
CXOToday has engaged in an exclusive interview with Mr. George Muthoot George, Deputy Managing Director, Muthoot Finance
- What is driving Muthoot Finance’s commitment of giving back to the society?
In an era where society places increasing expectations on the corporate sector to actively contribute to community growth, Muthoot Finance has remained steadfast in its commitment to societal well-being and development. With a banking legacy spanning 136 years, we’ve consistently aimed beyond profit generation, continually setting benchmarks for corporate responsibility towards both stakeholders and the community.
Our CSR initiatives embrace a comprehensive approach, focusing on Education, Healthcare, and Environmental protection. Through our Corporate Social Responsibility endeavors spanning healthcare, education, natural disaster relief, youth empowerment, social upliftment, and individual social responsibility, we’ve positively impacted the lives of millions. As a leader in the gold-loan space, our aspiration is not only to be a frontrunner in our industry but also to set a benchmark in CSR initiatives within the entire NBFC and BFSI sector. In FY23, the company allocated over Rs. 964 million to its CSR projects, benefiting 0.55 million individuals. Throughout the years, we’ve refined our CSR strategies, aiming not only to enhance economic and social well-being but also to cultivate a sustainable future at the grassroots level.
- The purpose behind launching the Tiger Conservation CSR initiative and future plans
While wildlife conservation and climate action are often viewed as distinct environmental concerns, they are intricately linked. The significant shifts in climatic patterns have begun negatively impacting wildlife, such as the drying of water reservoirs in wildlife sanctuaries. As previously mentioned, environmental preservation is a central focus of Muthoot Finance’s CSR initiatives.
In response to these challenges, Muthoot Finance recently installed solar pumps at Tipeshwar Wildlife Sanctuary and Melghat Tiger Reserve in collaboration with the Hope and Helping Hand Society NGO. This initiative aligns with our broader goal of safeguarding natural ecosystems and wildlife habitats. The installation of solar pumps ensures a consistent water supply year-round, essential for wildlife and forest conservation. This pioneering effort by a corporate entity at Tipeshwar Wildlife Sanctuary and Melghat Tiger Reserve marks an industry-first initiative.
Continuing on the collaboration with the Hope and Helping Hand Society NGO, Muthoot Finance intends to exploring more such forests and wildlife centres in Maharashtra to extend similar facilities and make a positive environmental impact, supporting the well-being of natural habitats and wildlife by expanding this CSR initiative.
- What is the driving force behind Muthoot Finance supporting these initiatives and continuing the legacy so many years since The Muthoot Group’s inception in 1887?
Inspired by our former Chairman, Shri. M. G. George Muthoot, Muthoot Finance has a profound legacy that transcends generations, fostering a culture centred around creating positive social impact. His purposeful and visionary approach to harmonizing nationwide CSR initiatives has been a guiding force for The Muthoot Group over the years. Even before the mandatory CSR spending mandate of 2% came into effect, Muthoot Finance was deeply entrenched in the realm of CSR, woven into the organizational DNA.
As previously mentioned, we have adopted a comprehensive approach to tackle India’s critical social challenges across three primary domains: Education, Healthcare, and Environment. Despite encountering various fluctuations and challenges, we have steadfastly upheld our commitment to our communities. In fact, over the several years, Muthoot Finance has seized every opportunity like COVID-19 pandemic, Kerala floods amongst many others, to refine, expand, and expedite its CSR programs, aiming to generate significant and lasting impact.
- How is Muthoot Finance committed towards dual mission of business growth and social impact?
Through our multifaceted approach, Muthoot Finance remains dedicated to achieving business milestones while fortifying the philanthropic endeavors. Our company ingrains a profound commitment to community empowerment in every business initiative we undertake. The diversed services offered by The Muthoot Group, including gold loans, SME loans, affordable housing loans, personal finance loans, and more, is geared towards fostering financial inclusivity across Bharat. With a presence spanning over 5000 branches across India, our aim is to contribute to the growth of the Indian economy by expanding credit accessibility and catering to the underbanked.
On the business front, Muthoot Finance has made remarkable progress, witnessing a 24% Year-on-Year consolidated loan AUM growth, reaching Rs. 79,493 crores, and a 24% Year-on-Year growth in consolidated profit after tax, totalling Rs. 2,140 crores for the first half of FY 2024. Similarly, on the CSR front, the company has pledged Rs. 1 billion to make a positive impact on communities in the current financial year (FY24). We are committed to diligently scaling and impacting grassroots levels, enhancing shared value, and ensuring sustainability in our CSR programs. We strongly believe that our initiatives will act as catalysts for social development, contributing to the sustainable economic growth of India and fostering an Atmanirbhar Bharat.
